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New EU Regulations on Crypto Assets: A Comprehensive Overview
New EU Regulations on Crypto Assets: A Comprehensive Overview
On June 30, 2022, European institutions reached a provisional agreement on the Markets in Crypto-Assets (MiCA) regulation, marking a historic step toward establishing a harmonized legal framework for crypto assets across all 27 EU member states. MiCA was first proposed in 2020 and has undergone multiple revisions before reaching this milestone. The European Securities and Markets Authority (ESMA) will oversee the regulation, ensuring transparency, consumer protection, and environmental accountability within the crypto sector.
What is MiCA and what does it regulate?
MiCA is designed to create unified standards for the supervision of crypto-asset service providers (CASPs), consumer protections, and the environmental impact of crypto-assets. It aims to enhance market integrity and increase investor trust. One of its major objectives is to establish clarity and uniformity in public offerings of crypto-assets and the legal responsibilities of companies operating in the sector.
Key Provisions of the MiCA Agreement
| Aspect | Details |
|---|---|
| Oversight Authority | European Securities and Markets Authority (ESMA) will monitor crypto markets and maintain a registry of non-compliant providers. |
| Environmental Reporting | Crypto-asset providers must publish energy consumption data and environmental impact of their assets. |
| Proof-of-Work Mining | Proposed ban was rejected; however, environmental transparency is now mandatory. |
| NFT Regulation | NFTs offered at a fixed price (e.g., tickets, game items) are temporarily exempt but may be included in future revisions. |
| Anti-Money Laundering | ESMA will establish a blacklist of non-compliant providers operating without EU authorization. |
What comes next?
Following the trilogue agreement, MiCA must be formally approved by the Economic and Monetary Affairs Committee, then passed in a plenary session of the European Parliament and approved by the Council. Once ratified, MiCA will provide a clear and consistent regulatory environment for crypto-asset markets in the EU.
Implications for the industry
This regulatory clarity is expected to encourage innovation while deterring illicit activity in the crypto market. Although some actors expressed concern over energy reporting obligations and possible future NFT regulation, the overall reception has been positive among companies seeking legal certainty and fair competition.
How Quppy ensures compliance
As a regulated fintech player in the European market, Quppy is closely following the development of the MiCA regulation. With an already transparent and secure infrastructure, Quppy is committed to upholding all necessary compliance measures under the new directive, including reporting obligations and adherence to ESMA standards.
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